How to find the best loan in the Philippines?
When you need extra money to finance your next project, it’s always a good idea to start by comparing different loan offers and lenders. Whether it’s online loans or meeting in person at different financial institutions, comparing loans can take a lot of time and effort, especially if you don’t understand the main components of a loan.
To simplify the process and help you find the loan with the most favourable terms for you, we created Moneezy. Moneezy helps you compare the loan terms from top lenders in the Philippines by giving you a clear picture of interest rates, loan costs and repayment instalments.
Why compare loans with Moneezy?
Borrow money the right way – compare easily, quickly and for free.
Moneezy is a leading financial portal operating in over 17 international markets, spanning across Europe, Africa, and Asia. We collaborate with over 200 lenders worldwide to ensure that our users are offered the best terms and loans that fit exactly their needs.
Moneezy is not a lender nor a financial institution, therefore we are not biased when comparing loan offers to our users. We aim to be a trusted partner for people who need to find financing quickly. Our comparison tool is free to use and saves you time and effort by comparing loan terms from top lenders in the Philippines.
Understanding the Components of a Loan
Before taking out a loan, it's important to understand what each component of the loan means. Knowing these basics helps you compare offers and find the loan that matches your needs and budget best.
Here are the key components to look out for:
Loan Amount - How much you borrow
This is the total amount you borrow from the lender, also known as the principle. Carefully consider how much money you need and what you will use it for. Bear in mind that higher amounts mean more to repay over time.
Loan Term - how long you’ll repay the loan
The time you have to repay the loan is usually from 1 to 72 months. Shorter terms often mean higher monthly payments but less interest paid overall.
Monthly Repayment – the amount you repay every month
This is the amount you’ll pay each month. It includes both principal (the amount borrowed) and interest. Make sure to choose a monthly repayment amount you can fit within your budget.
Interest Rate – the basic cost of the loan
The interest rate is the percentage the lender charges you on top of the loan amount. Interest rates can be different and often vary between lenders and loan types. A lower interest rate means you'll pay less overall.
Fees and Charges – any additional costs of the loan
Some loans come with processing fees, late payment charges, or early repayment penalties. Always read the contract you are offered.
Total Cost of the Loan – how much the loan will cost you
This is how much you’ll pay in total by the end of the loan term, including the loan amount, interest, and any fees.
APR (Annual Percentage Rate) - total cost of the loan in percentage
Often presented in a percentage, APR shows the total cost of the loan. It includes the interest rate plus any additional fees that the loan may have. APRs can vary widely depending on the lender and loan type. Online loans often have higher APRs because of shorter terms and lack of collateral.
Understanding these elements helps you take smart financial decisions when choosing the loan that’s right for you. Read more about interest rate and the cost of a loan here.
While the interest rate might seem low, the APR shows the real cost of the loan and helps you compare offers more accurately.
Step by Step – How to borrow money online?
Define what you need money for and how much you would need to borrow to finance your project.
Fill out Moneezy’s online application with the relevant information, e.g. the amount and term of the loan.
Compare the loan offers you receive, e.g. by looking at the interest rate and APR.
Send your application directly to one or more of the lenders you are matched with.
Wait for their response to your application.
Sign the loan offer that fits your finances best and receive the money shortly.
Make sure you pay your loan instalments every month.
Before you take a loan
Here’s what you should think about before you apply for a loan.
Make a budget
Before taking out a loan, make a monthly, quarterly and annual budget. Check your income and expenses and calculate what monthly repayments you can make comfortably. Always choose repayment plans that fit your budget.
Plan ahead your fixed payment amounts so you can stay on track with your loan and in control of your finances.
Calculate exactly how much you need to borrow
It can be tempting to borrow a bit more money just to be sure you have enough, or just for fun, but it’s a very bad idea. Only borrow money that you really need, and you can afford to repay it.
Use a loan calculator for the Philippines
Every lender provides you with a loan calculator on their website. A loan calculator helps you estimate the total cost of the loan, and your repayment schedule. Simply enter your desired loan amount and repayment period, and you’ll instantly see how much you need to pay each month.
Can I see a loan agreement sample?
Once you apply for a loan and you are approved, the lender will send you a copy of the loan agreement before you proceed. This includes all the important details, e.g. loan amount, interest rate, fees, repayment schedule, and terms. Make sure to review everything carefully before signing.
The loan agreement is only binding once you sign it.
Loan Repayment
What are your repayment options?
Different lenders have different repayment options, but the most popular ones include weekly, bi-weekly, or monthly. Choose how often you repay based on your cash flow and what works best for your budget.
The most common loan repayment methods in the Philippines are e-wallets & online banking, and payment centres.
Full loan repayment
Ready to finish your loan? Most lenders let you repay your loan in full at any time. Depending on the loan offer you signed, you may even save on interest or fees.
What if you can’t make a payment?
No matter how much we try, sometimes life just happens, and unexpected expenses may make it hard to make the next payment.
In such cases, contact your lender as soon as possible to see how you can resolve the situation and avoid extra fees or penalties.
If you reach out in good time, most lenders will offer some kind of a solution, either by suggesting a minimum payment, moving the payment day or offering you a new repayment plan that better fits your situation.
Advantages and disadvantages of borrowing money online
Simple lending process
Fast payout
Flexible repayment terms
Easy to compare offers and lenders
Higher interest rates
Extra fees may be charged
Limited loan amounts
Risk of loan scams
Advantages of online loans
Simple lending process
The easy online application process allows you to borrow money from any place in the Philippines. Available 24/7, you can fund your next project or cover an unexpected expense in a matter of minutes.
Fast payout
Fast application, fast approval, fast payout. Everything about borrowing money online is optimized so that you can get an instant loan. Still be careful and take your time to compare loan offers and understand the terms of the loan you decide to sign.
Flexible repayment terms
It’s up to you whether you prefer a shorter loan term to pay less interest, or a longer term to keep your monthly payments smaller. Such flexibility makes it easier to fit your monthly repayments into your budget.
Easy to compare offers and lenders
There is a wide choice of lenders online, all of them fighting to offer the best terms and conditions. Platforms such as Moneezy, make it easy for the user to compare trusted loan providers and personalized offers.
Disadvantages of online loans
Higher interest rates
Online loans are loans that don’t require collateral, such as a home, car, etc. That makes it more uncertain for the lender that the loan will be repaid. Thus, short-term loans have higher interest rates and cost more than bank loans. To find the best rate, always compare loan offers from different online lenders.
Extra fees may be charged
Online loans often have more fees, like processing and service ones, or late repayment penalties. Again, this is because loans without collateral are riskier for the lenders. To make sure you get the best conditions and avoid extra fees, always read the full loan agreement.
Limited loan amounts
Online loans offer limited loan amounts, especially for first-time borrowers. You have to build a good repayment record before you are offered bigger loans. However, first-time borrowers can often enjoy more favorable terms such as a low interest rate on their loan.
Risk of loan scams
When borrowing online, it’s important to make sure the lender is a legit and trusted company. In the Philippines, all lenders must be registered with the Securities and Exchange Commission (SEC) and have their own SEC Registration Number stated on their website. Always check this before applying for an online loan to make sure you’re borrowing from a legitimate and trusted source.
Moneezy only works with lenders registered with SEC.
